Arbitration and Commercial Disputes in the UAE

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Arbitration and Commercial Disputes in the UAE

Business in the UAE is a legal system that allows you to protect your interests through both commercial court and arbitration. The choice of mechanism depends on the nature of the dispute, the content of the contract, and your priorities—speed, confidentiality, or the possibility of appeal.

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What is Arbitration?

Arbitration is an alternative method of resolving commercial disputes where parties refer the case to an independent arbitrator. The decision has the same force as a court ruling and is enforced under the New York Convention. It is regulated by Federal Arbitration Law No. 6 of 2018 (based on UNCITRAL).

Breach of commercial contract.
Disputes with contractors and suppliers.
Agency and distribution conflicts.
International transactions and cross-border projects.
Disagreements between founders and partners.

Main Arbitration Centers

Center	Features
DIAC	Largest center in Dubai, English-speaking, replaces DIFC-LCIA
ADCCAC	Center at Abu Dhabi Chamber of Commerce, civil law
ICC / SIAC	International platforms, can use UAE as jurisdiction

What is a Commercial Claim?

Non-fulfillment of contract and payment delay.
Recovery of damages.
Supply of substandard goods.
Violation of agency or distribution agreement.
Unfair competition.

Where are Claims Heard?

Jurisdiction	Court	Law
Mainland	Dubai / Abu Dhabi Courts	Civil Law (UAE civil law)
DIFC	DIFC Courts	Common Law, contracts in English
ADGM	ADGM Courts	Common Law, FSRA regulations

Arbitration vs. Commercial Court

Criterion	Arbitration	Commercial Court
Publicity	Confidentially held hearings	Open hearings
Appointment of Judge/Arbitrator	Parties choose arbitrator	❌ Court appoints judge
Language	Any (by agreement)	Arabic / English in DIFC/ADGM
Appeal	❌ No	✅ Yes
Speed	6–12 months	Longer
Cost	Higher (especially international)	Lower, but longer process
Enforcement	Through court or New York Convention	Court order in jurisdiction

Is Your Contract Breached? Partner Not Paying?

MIRAD will help choose an effective path: arbitration or court. We will prepare a claim, protect your interests, and achieve results.

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